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At JCPenney stores across the US, shoppers may notice a fresh paint smell, better lighting and shiny new signage – with even more improvements planned for the coming months. Centralised checkout counters are replacing registers once spread across multiple departments, and posters promise a "new and improved shopping experience" once the remodels are complete. Change is afoot at the retailer, and not just in the form of upgraded carpet (though that, too, is on the list). The updates are part of a $1bn (£808m) investment the company announced in late August – a pricey effort to reinvigorate the brand following a high profile 2020 bankruptcy and subsequent restructuring. The funds will be partly dedicated to slicker technology and improved e-commerce features, but much of the focus remains on JCPenney's more than 650 physical stores. As a numbers game, this makes sense for the American department store chain: brick-and-mortar sales account for about 70% of the company's revenue, so enticing people to keep making those in-person trips will be crucial to recovery. Beyond that, in surveys and focus groups, shoppers continue to emphasise the importance of stores, says Katie Mullen, JCPenney's chief customer officer. "Our customer tells us that they care about the store environment," she says. "They tell us that they care about product availability, and they tell us that they care about inspiration." JCPenney is among the companies doubling down on their retail presences, for many different reasons. It may be surprising amid the recent narrative, in which experts and shoppers alike have declared once-thriving malls dead due to retailers' losing battles against Amazon, economic challenges, demographic shifts and better-managed competition. Indeed, vacant storefronts across the US have been converted to apartment complexes, pickleball courts, medical centres, coworking spaces and entertainment venues. But while these trends paint a bearish picture of the future of traditional physical retail, some companies are making moves that suggest they still see in-store shopping as an opportunity for growth. Their strategies differ, but each are catering to what consumers say they want – and need. In-person shopping hasn't stopped, but it has slowed down. About 78% of global retail sales occurred offline in 2022, down from 85% in 2019. And amid the widespread growth of online shopping, especially throughout the past few years, brick-and-mortar stores have become an afterthought for many consumers. This behavioural transition has meant many middle-market retailers closed doors and tightened purse strings amid frenzied efforts to create glossy, easy-to-use e-commerce portals. It came at the cost of maintaining an inviting in-store experience. But now, companies are pouring money back into neglected stores – and they're investing in more than just repairs. Across the US, retailers in all sectors are snapping up leases and placing big bets on brick-and-mortar. At the end of the second quarter of 2023, just 4.8% of all retail space in the country was available for lease, according to a report from commercial real estate information company CoStar, which noted the US retail space market was "at its tightest level on record". What retailers are doing with that space is what sets today's approach apart from past endeavours. Yes, they're making sure the storefronts shine – but they're also building different kinds of physical spaces than they have in decades past. That's because consumer preferences have changed, and in many cases, they have even become more demanding. "Consumers are looking for fast and easy checkout. They're looking for retailers to have the products they want in stock when they make the trip to the store," says Michael Brown, a partner and Americas retail leader at the global strategy and management consulting firm Kearney. "They're expecting a little bit more technology to help them navigate stores' assortments and aid their shopping experience, but not necessarily to just replace it." Saks is pouring $250m to $270m (£202m to £218m) into upgrading its Fifth Avenue flagship, with features like a photogenic Rem Koolhaas-designed escalator, scaled up handbag department and dedicated shop-in-shops for brands like Alexander McQueen and Burberry